New Delhi: On Wednesday, India celebrated a decade of the Pradhan Mantri Jan Dhan Yojana (PMJDY), a significant milestone that underscores the success of India’s economic landscape reshaping. It is a testament to Prime Minister Narendra Modi’s visionary planning from the outset.
Jan Dhan, launched within months of his tenure, was PM Modi’s first flagship initiative. It stemmed from his own deeply held convictions rather than external expert recommendations.
The JAM trinity, a transformative concept that stands for Jan Dhan, Aadhaar, and Mobile, was made possible by the Jan Dhan scheme and the legal framework for Aadhaar. This trinity, which integrated the poorest individuals into formal financial systems, was crucial in successfully implementing the Jan Dhan scheme, fundamentally transforming India’s economic landscape.
One of its key achievements was facilitating Direct Benefit Transfers (DBT) in 2014, which effectively eliminated the humiliation of standing in long queues to access rightful benefits and contributed significantly to poverty alleviation.
Secondly, the JAM trinity streamlined the disbursement of Mudra Loans in 2015. These collateral-free, affordable loans ended the dominance of informal sector loan sharks and the cycle of perpetual debt. According to available data, over 46 crore loans have been issued to date.
Thirdly, the JAM trinity supported implementing a comprehensive social security system introduced by the government. This system, including life insurance, accident insurance, and pension schemes, reached more than 50 crore people previously underserved. According to data, over 45 crore individuals now benefit from these programmes.
The PM Awaas Yojana is the fourth key area where the JAM trinity significantly impacted. This scheme, aimed at providing affordable housing to the urban poor, was made more effective by Jan Dhan, ensuring that subsidies were effectively delivered to the intended, targeted, and deserving beneficiaries. To date, over 4 crore homes have been allocated under this scheme, providing a significant boost to the housing sector and improving the living conditions of many.
The fifth significant role of the JAM trinity was in crop insurance. The PM Fasal Bima Yojana, launched in 2016, succeeded where previous schemes had failed, primarily because it ensured that farmers received their insurance payouts when needed. According to experts, over 8 crore farmers have been covered under this scheme to date.
In 2016, the sixth major role of the JAM trinity was enabling the UPI (Unified Payments Interface) system for digital payments. Its exceptional mass adoption and success can be attributed to its connectivity across all segments of society. Data shows that India now accounts for 40 percent of global digital payments.
The seventh major contribution of the JAM trinity was implementing the Ayushman Bharat scheme. This initiative, the world’s largest health scheme, transformed what was once an unattainable dream for the poor into a reality. Today, over 50 crore beneficiaries in the country benefit from this programme.
The eighth major achievement facilitated by the JAM trinity was the launch of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme in 2019. This programme integrated marginal farmers into the financial system, allowing for direct reach and support. To date, over 11 crore farmers have been covered under this scheme.
The ninth major contribution of the JAM trinity was providing crisis support. During the COVID-19 lockdown, assured, timely, and leak-proof aid was crucial in assisting millions of people. The JAM Trinity played a vital role in ensuring that the government’s relief measures reached the intended beneficiaries without any leakages, thereby helping the country navigate the pandemic.
The JAM trinity, particularly the Jan Dhan system, not only addressed the basic needs of the poor but also sparked a digital revolution. By eliminating middlemen, improving access to loans, and ensuring better healthcare, this revolution has fundamentally restored dignity and empowerment to many, inspiring hope for a brighter economic future.
Among the significant economic reforms since 1991, Jan Dhan stands out as one of the most transformative, reflecting Prime Minister Modi’s visionary planning from 2014. Its enduring legacy, a testament to its remarkable success, is a matter of pride and optimism for India’s economic future.
A remarkable exercise in Financial Inclusion
In 2014, Guinness World Records officially recognised the PM Jan Dhan Yojana for setting a record in the “Most Bank Accounts Opened in One Week” category as part of a Financial Inclusion Campaign. This impressive feat is a source of pride for all Indians.
The initiative’s success has been demonstrated by 53 crore people being brought into the formal banking system by opening Jan Dhan Accounts. This is impressive, considering the total European population is roughly 75 crore.
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-IANS
